Shares of Mahindra Logistics, a subsidiary of auto major Mahindra & Mahindra (M&M), have jumped nearly 6% in opening trade on Tuesday, a day after the company announced the acquisition of the B2B express business of Gurugram-based logistics firm Rivigo Services Private Limited (RSPL) for cash consideration of ₹225 crore. The deal will help the third-party logistics service provider to accelerate its capabilities in the B2BExpress business using Rivigo's strong network of 250+ processing centers and branches.
Snapping two session losing streak, Mahindra Logistics shares opened 2.08% higher at ₹515.05, against the previous closing price of ₹504.55 on the Bombay Stock Exchange (BSE). Extending opening gains, the counter rose 5.75% to ₹533.6, with 0.11 lakh shares changing hands over the counter in the first half an hour of the trade so far. In comparison, the BSE Sensex was trading 512 points, or 0.9%, higher at 57,657 levels.
The smallcap stock, having a market capitalisation of ₹3,764.7 crore, trades 34% lower than its 52-week high of ₹814 touched on November 25, 2021. It hit a 52-week low of ₹395.65 on February 28, 2022.
The stock has delivered a negative return of 26.5% in the past one year, while it has dropped 23% on a year-to-date (YTD) basis. In the last one month, the counter has risen 6.5% and more than 2% in a week.
Mahindra Logistics in an exchange filing on Monday said it has signed a business transfer agreement with Rivigo Services for purchasing its B2B express business, including the customers, team and assets of express business, technology platform and the Rivigo brand. However, RSPL will continue to own its truck fleet and the rights to full truck load (FTL) operations.
Formed in August 2014, Rivigo is in the relay trucking model with a strong tech interface. It operates in two key business segments - full truck load and B2B express business - which covers over 19,000 pin-codes, 250+ processing centres and branches, spanning an area of more than 1.5 million square feet.
Commenting on the development, Rampraveen Swaminathan, MD & CEO, Mahindra Logistics said, "B2B Express Logistics continues to see strong tailwinds as customers focus on deepening delivery networks, enhancing digital adoption and investing in agile supply chains. This acquisition will enhance and strengthen our offerings and reach for our customers in the B2B express and PTL space.”
“Team Rivigo has built deep capabilities, and we look forward to building on the strengths as we integrate the businesses. We are excited by the team, as they share a common ethos with a shared focus on empowering drivers & communities,” he added.
Mahindra Logistics Limited (MLL) is an integrated third-party logistics service provider, specialised in supply chain management and enterprise mobility. The Mahindra Group company serves over 400+ corporate customers across various industries like automobile, engineering, consumer goods, and e-commerce.
Leave a Comment
Your email address will not be published. Required field are marked*